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Minutes for SB16 - Committee on Financial Institutions and Insurance
Short Title
Amending the insurance holding company act.
Minutes Content for Tue, Jan 17, 2017
Chairperson Longbine opened the hearing on SB16 and Eileen Ma provided a summary of the bill, which amends the insurance holding company system act.
Clark Shultz spoke in support of SB16. Its provisions authorize the Kansas Insurance Commissioner to act as a group-wide supervisor, and to work with other state, federal, and international regulatory agencies to identify a single group-wide supervisor for any internationally active insurance group. This would ensure that as companies grow and acquire subsidiaries, the companies are managing their risk appropriately and would provide the appropriate level of protection for Kansas citizens and businesses. Mr. Shultz stood for and answered questions from Senators Pyle, Billinger, Rogers, Wilborn, and Givens. (Attachment 2)
Chairperson Longbine asked if there were any other conferees who wanted to speak. Jim Hall, Regional Vice President of State Relations for the American Council of Life Insurers (ACLI) rose to speak in support of SB16. He stated that ACLI is a national trade council that represents the insurance industry. It has over 300 member companies which hold about 90 percent of the life insurance in force in the company today. ACLI staff worked with the NAIC, as well as many other individuals in the industry, to construct these amendments. The NAIC was very deliberate and took a long time to develop the amendments. Mr. Hall stated that ACLI and its members support the amendments and also the Kansas Insurance Department's support of SB16. Mr. Hall did not provide any written testimony.
Marlee Carpenter spoke in opposition to SB16. She said that most of the KAPCIC member companies are domiciled Kansas companies and their members live and work here in the state. The membership is specifically opposed to the portion of the bill that repeals the $300 million threshold for the enterprise risk report, which they believe is still important for smaller domestic companies. Ms. Carpenter stated that the Interim Committee in 2012 inserted this exemption when they were considering the passage of the holding company act, and KAPCIC continues to support it today. Ms. Carpenter answered questions from Senators Rogers and Wilborn. (Attachment 3)
There being no other questions or testimony presented, Chairperson Longbine closed the hearing on SB16.
The meeting adjourned at 10:08 am. The next meeting will be Wednesday, January 18, 2017 at 9:30 a.m.
